At the time of dissolving a marriage, a person will likely wish to consider all aspects of how their life may be affected. Going forward from the divorce, will they owe support payments or be receiving them? How will the future needs of an ex-spouse or a child change how funds are allocated? In New York, some consider it important to understand how support payments are taxed after divorce.
Alimony payments are tax-deductible for the person making the payments. The recipient of the spousal support will have to pay income tax on the money sent to them. Child support payments, on the other hand, are neither deductible nor do they need to be claimed as income, since they go toward the support of a child.